Gold ($3,085/ounce) and silver ($34.1/ounce) gained 2 per cent and 3.2 per cent respectively last week. In the domestic market, gold futures (₹89,687/10 gm) and silver futures (₹1,00,457/kg) were up 1.3 per cent and 2.6 per cent respectively.

MCX-Gold (₹89,687)

Gold futures (June) began last week on the back foot by declining on Monday. However, the contract soon regained traction and rallied through the rest of the week.

The price action shows that the uptrend is strong. This leaves the probability of a further rally from here high. Although ₹90,000 is a potential hurdle, the contract can surpass this and touch ₹92,000.

In case there is a change in direction and the gold futures declines, it can find support at ₹88,000 and ₹87,300. Subsequent support is ₹86,000.

Trade strategy: Rollover the longs. That is, exit the April futures (bought at ₹86,500) at the open on Monday (evening session) and immediately buy the June futures at the prevailing price. Target and stop-loss can be ₹92,000 and ₹87,600 respectively.

MCX-Silver (₹1,00,457)

Silver futures (May), which saw a dip early last week like gold futures, rebounded on the back of the support at ₹97,400 and moved up till Thursday. Although there was a decline on Friday, the uptrend has not been negated.

The chart shows that the silver futures can rise to ₹1,04,000 in the near term. In case there is a fall from the current level, the contract can find support at ₹97,400 and ₹97,150. A rising trendline and the 50-day moving average coincides at ₹97,150, making it a strong support.

A breach of ₹97,150 can drag silver futures lower, probably to ₹94,700.

Trade strategy: Hold silver futures long recommended at ₹99,350. Maintain stop-loss at ₹99,500. Book profits at ₹1,04,000.